The Intermediary – September 2026 - Flipbook - Page 21
BUY-TO-LET
In focus
Bringing back
landlord buyers
O
ne of the benefits of
speaking to advisory
firms across the
country every week
is geing a very
immediate sense of
what landlords are actually doing,
rather than relying on the broader
narratives that can be thrown about
when it comes to buy-to-let (BTL).
As we head towards the final quarter
of 2026, those conversations feel
increasingly positive, particularly
when it comes to landlords who are
thinking about their next purchase,
reviewing how their existing
portfolios are financed, or considering
whether current property market
conditions offer an opportunity to
add to them.
There is a rather large caveat siing
at the end of October in the form of the
Budget. However, there are also good
reasons why advisers should be having
more focused conversations with
acquisitive landlord clients now rather
than assuming everyone will simply
sit on their hands until November.
Tenant demand remains one of
the most important parts of any
landlord’s investment decision, and
the recent direction of travel has
been encouraging, with evidence
from Pegasus Insight suggesting that
demand has strengthened again, while
the supply of available rental property
remains constrained.
That tallies with the conversations
we are having with advisers. Landlord
clients are not generally questioning
whether there will be demand for
good rental property, but are much
more focused on whether a particular
purchase works financially, and where
they can generate the right yield.
The landlord considering another
purchase today is likely to be looking
closely at purchase price, achievable
rent, financing costs and the potential
return across the whole investment,
rather than simply assuming capital
growth will make the numbers work.
There has been no shortage
of commentary in recent years
suggesting landlords are leaving the
private rented sector (PRS) in large
numbers. Clearly some have sold
properties, but that has never been the
whole story.
There are plenty who remain
commied to property for the long
term, and increasingly, some are
seeing the present UK housing market
as an opportunity to expand.
Recent Hamptons data showed
landlord purchases exceeding landlord
sales for the first time since 2019,
while figures also showed landlords
taking an increased share of overall
property purchases.
For advisers, that points towards
a group of existing clients who may
be moving from maintaining their
portfolios to actively considering
growth again.
An opening
Nationwide’s July figures showed
annual house price growth remaining
subdued, and there appears to be lile
expectation of a sudden surge.
For landlords prepared to buy,
that can alter the conversation
considerably. They may have more
choice, more time to assess properties,
and more scope to negotiate. We have
already seen evidence of landlords
negotiating harder on purchase price.
Experienced landlords tend to be
disciplined buyers, and if a property
does not work at one price but does at
another, they will make an offer based
on those numbers. A seller remains
free to accept or reject it. What
maers from a BTL perspective is that
some landlords clearly believe there is
value available, and are prepared to act
when they find it.
Wanting to purchase another
property and having the deposit
immediately available, however, are
two different things.
When I speak to advisory firms, one
of the areas that continues to come
WES REGIS
is national account
manager at Fleet Mortgages
through strongly is the importance
of looking at the portfolio as a whole,
particularly when clients have built up
equity in existing properties.
For some, refinancing could provide
the deposit, while others may be able
to restructure existing borrowing to
put themselves in a stronger position.
That creates a much wider advice
conversation than simply finding a
mortgage for a property the landlord
has already agreed to buy.
It means identifying those clients
who want to grow, understanding
what they already own, looking at
where equity sits within the portfolio,
and considering how existing
borrowing could support the next
stage of their plans.
Reasons for confidence
There are still plenty of unknowns.
The Budget means nobody should
assume the final months of 2026
will be completely straightforward,
but landlords have become used to
operating against that background.
Several factors are beginning to line
up more positively, with strong tenant
demand, improving yields, subdued
house price growth, greater product
choice and evidence that landlords
themselves are becoming more active
purchasers.
There is certainly no sense that
professional landlords have stopped
looking for opportunities, and in
many cases quite the opposite appears
to be true.
That should give advisers confidence
to start those conversations now,
not only about what clients might
purchase during the remainder of
this year, but about how they can
put their portfolios in the right
financial position to take advantage of
opportunities during 2027 as well. ●
September 2026 | The Intermediary
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